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XRP stuck below $0.50 despite Ripple announcing expansion of 1 billion XRP commitment

  • Ripple announced the launch of XRPL Japan-Korea Fund, expansion of the payment giant’s 1 billion XRP commitment. 
  • The remittance firm will work with companies in Japan and South Korea to integrate XRPL and fund projects.
  • XRP ranges below $0.50, extending losses to nearly 9% in the past seven days. 

Ripple (XRP) announced the launch of the XRP Ledger Japan-Korea Fund. The fund is a part of the payment remittance firm’s 1 billion XRP commitment to support developers in integrating XRP Ledger into their projects. 

Ripple is set to work with firms in Japan and South Korea and boost the development of projects on the Ledger through its fund. 

XRP is ranging below the key psychologically important level of $0.50 on Wednesday. 

Daily Digest Market Movers: Ripple expands to Japan-Korea through XRP Ledger fund 

  • The payment remittance firm announced the launch of its XRP Ledger fund to Japan and South Korea. 
  • Following the announcement, Ripple is expected to deliver on its 1 billion XRP commitment to developers integrating XRP Ledger in their projects. 
  • XRP Ledger developers' official X account tweeted about the program and explained that it includes corporate partnership, developer subsidy, startup investment, and community growth. 
  • Ripple is expected to support local events, hackathons and educational projects to promote the adoption of XRP Ledger in the two countries. 
  • XRP holders are awaiting developments in the Securities and Exchange Commission’s (SEC) lawsuit against Ripple. 
  • The latest update is the payment remittance firm’s letter filed in support of its motion to seal relevant documents that contain sensitive financial information, on May 29. 

Technical analysis: Ripple could extend losses to $0.45

Ripple has been in a downward trend since March 12, as seen on the XRP/USDT 1-day chart. The altcoin formed lower highs and lower lows and is currently stuck below the $0.50 level as of Wednesday. In the past seven days, XRP wiped out nearly 9% of its value, and in the 24-hour timeframe, XRP price is nearly unchanged. 

The momentum indicators, Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) support XRP price decline. MACD is flashing red bars above the neutral line and RSI reads 33.03, close to oversold zone at 30. 

XRP could decline to support at $0.4508 and extend its losses. 

XRP

XRP/USDT 1-day chart

If Ripple sees a daily candlestick close above $0.50, it could invalidate the bearish thesis. XRP could recover towards $0.5814, the 50% Fibonacci retracement of its decline from the March 11 top of $0.7440 to the April 13 low of $0.4188. 

SEC vs Ripple lawsuit FAQs

It depends on the transaction, according to a court ruling released on July 14: For institutional investors or over-the-counter sales, XRP is a security. For retail investors who bought the token via programmatic sales on exchanges, on-demand liquidity services and other platforms, XRP is not a security.

The United States Securities & Exchange Commission (SEC) accused Ripple and its executives of raising more than $1.3 billion through an unregistered asset offering of the XRP token. While the judge ruled that programmatic sales aren’t considered securities, sales of XRP tokens to institutional investors are indeed investment contracts. In this last case, Ripple did breach the US securities law and will need to keep litigating over the around $729 million it received under written contracts.

The ruling offers a partial win for both Ripple and the SEC, depending on what one looks at. Ripple gets a big win over the fact that programmatic sales aren’t considered securities, and this could bode well for the broader crypto sector as most of the assets eyed by the SEC’s crackdown are handled by decentralized entities that sold their tokens mostly to retail investors via exchange platforms, experts say. Still, the ruling doesn’t help much to answer the key question of what makes a digital asset a security, so it isn’t clear yet if this lawsuit will set precedent for other open cases that affect dozens of digital assets. Topics such as which is the right degree of decentralization to avoid the “security” label or where to draw the line between institutional and programmatic sales are likely to persist.

The SEC has stepped up its enforcement actions toward the blockchain and digital assets industry, filing charges against platforms such as Coinbase or Binance for allegedly violating the US Securities law. The SEC claims that the majority of crypto assets are securities and thus subject to strict regulation. While defendants can use parts of Ripple’s ruling in their favor, the SEC can also find reasons in it to keep its current strategy of regulation by enforcement.

The court decision is a partial summary judgment. The ruling can be appealed once a final judgment is issued or if the judge allows it before then. The case is in a pretrial phase, in which both Ripple and the SEC still have the chance to settle.

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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